Tanvi-0597-Custimer Expectetion and Satisfaction of Serv (1)

8/3/2019 Tanvi-0597-Custimer Expectetion and Satisfaction of Serv (1)

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Customer expectation and satisfaction of service quality

M.P Birla Institute of Management - 1 -

DISSERTATION PROJECT ON

CUSTOMER EXPECTATION AND

SATISFACTION OF SERVICE QUALITY(Conducted for Monday to Sunday- Retail outlet)

Submitted in partial fulfillment of the requirement for MBA

Degree of Bangalore University

By

TANVI RANGA HARITAS

REG NO. 05XQCM6103

Under the guidance and supervision of

Mr. Afzal Hussain Professor K.L RamdasCustomer Care Associate and Regional MPBIMManager Operations (Internal Guide)

Monday to Sunday

M.P BIRLA INSTITUTE OF MANAGEMENTAssociate Bharatiya Vidya Bhavan

# 43, Race Course Road, Bangalore-560001


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DECLARATION

I hereby declare that the research work embodied in this dissertation entitled

CUSTOMER EXPECTATION AND SATISFACTION OF SERVICE QUALITY

(Conducted for Monday to Sunday- Retail outlet) has been carried out by me under

the guidance and supervision of Professor K.L Ramdas, M.P.B.I.M., Bangalore (Internal

Guide).I also declare that this dissertation has not been submitted to any University or

Institution for the award of any Degree or Diploma.

Place: Bangalore TANVI RHARITAS

Date: 07 May,2007


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GUIDES CERTIFICATE

I hereby certify that the research work embodied in the dissertation

CUSTOMEREXPECTATION AND SATISFACTION OF SERVICE

QUALITY(Conducted for Monday to Sunday- Retail outlet) has been undertaken and

completed by Tanvi R Haritas under my guidance and supervision.

I also certify that she has fulfilled all the requirements under the covenant governing the

submission of dissertation to the Bangalore University for the award of MBA degree.

Place: Bangalore (Prof. K.L

Ramdas)

Date : 07 May,2007


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PRINCIPALS CERTIFICATE

I hereby certify that this dissertation is an offshoot of the research work undertaken and

completed by Tanvi R Haritas under the guidance of, Professor K.L Ramdas, M.P.B.I.M.

Bangalore.

Place: Bangalore (Dr. N. S.Malavalli)

Date : 07 May,2007 Principal,MPBIM


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ACKNOWLEDGEMENTS

I extend my sincere thanks to Professor K. Ramdas MPBIM, Bangalore for providing me

all

the information required and the guidance throughout the project without which this

project

would not have been possible.

I would like to thank Mr. Afzal Hussain, Customer Care Associate and Regional

Manager

Operations, Monday to Sunday and Mr. Ajay Kumar, Store Manager, Monday to Sunday

for providing me an opportunity to work on this project.

I would also like to sincerely thank all my lecturers and my friends for their help in

completing my project successfully.

(Tanvi R Haritas)


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TABLE OF CONTENTS

Serial No. Topic Page No.

1 EXECUTIVE SUMMMARY 1

2 INTRODUCTION 2

3 RESEARCH DESIGN 14

4 COMPANY PROFILE 18

5 INDUSTRY PROFILE 28

6 ANALYSIS AND INTERPRETATION 33

7 FINDINGS OF THE STUDY 49

8 SUGGESTIONS AND RECOMMENDATIONS 51

9 ANNEXURE 53

10 BIBLIOGRAPHY 56


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LIST OF TABLES

Serial No. Table Title Page No.

1 Table 1- Table showing age group of respondents 33

2 Table2- Table showing gender of the respondents 34

3 Table 3- Table showing frequency of customers

visiting Monday to Sunday

35

4 Table 4- Table showing the time span since the

respondent has been a customer of Monday to Sunday

36

5 Table 5-Table showing the customers ranking in terms

of cleanliness

37

6 Table 6-Table showing the customers satisfaction in

terms of interiors at Monday to Sunday

38

7 Table 7- Table showing the customers satisfaction interms of bill transaction

39

8 Table 8- Table showing the customers satisfaction

with respect to display of products

40

9 Table 9- Table showing the customers ranking of

shopping experience at Monday to Sunday

41

19 Table 11- Table showing the ranking of sales personnel

in terms of helping customers

42

11 Table 11- Table showing the ranking of sales personnel

in terms of knowledge of products

43


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12 Table 12-Table showing the ranking of sales personnelin terms of courteousness/politeness towards customers

44

13 Table 13- Table showing the ranking of products interms of availability

45

14 Table 14 - Table showing the ranking of products interms of quality

45

15 Table 15- Table showing the ranking of products in

terms of pricing

46


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LIST OF CHARTS

Serial No. Chart Title Page No.

1 Chart 1- Chart showing age group of respondents 33

2 Chart 2-Chart showing gender of respondents 34

3 Chart 3-Chart showing frequency of customers visiting

Monday to Sunday

35

4 Chart 4- Chart showing the time span since the

respondent has been a customer of Monday to Sunday

36

5 Chart5-Chart showing the customers ranking in terms

of cleanliness

37

6 Chart 6-Chart showing the customers satisfaction interms of interiors at Monday to Sunday 38

7 Chart 7- Chart showing the customers satisfaction in

terms of bill transaction

39

8 Chart 8- Chart showing the customers satisfactionwith respect to display of products

40

9 Chart 9- Chart showing the customers ranking of

shopping experience at Monday to Sunday

41


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10 Chart 10- Chart showing the ranking of sales personellwith respect to helping customers

42

11 Chart 11-Chart showing the ranking of sales personnelin terms of knowledge of products

43

12 Chart 12- Chart showing the ranking of sales personnelin terms of courteousness/politeness towards customers

44

13 Chart 13- Chart showing ranking of products bycustomers in terms of availability, quality, pricing

46

14 Chart 14- Chart indicating whether customers willrecommend the store to a friend or relative

48


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EXECUTIVE SUMMMARY

The Indian retail industry is no more nascent today. Retailing in India is gradually

inching its way toward becoming the next boom industry. The whole concept of shopping

has altered in terms of format and consumer buying behavior, ushering in a revolution in

shopping in India. Modern retail has entered India as seen in sprawling shopping centres,

multi-storeyed malls and huge complexes.

In partial fulfillment of MBA degree of Bangalore University, I took up a Dissertation

project titled Customer expectation and satisfaction of service quality (Conducted for

Monday to Sunday- Retail outlet). Organised retail in India has become the buzz of the

day.

Hence, I thought it would be a right time to take such a project and

present the findings of what impact it has made. I have also specified in

the end of the dissertation the findings and the suggestions to the company which the

company can consider to improve performance.


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INTRODUCTION

BACKGROUND OF THE STUDY

The Indian retailing industry was traditionally dominated by small kirana stores.

However with globalization, organized retailing has become the buzz word in India.

Though organized retailing occupies a minuscular share of the retail industry, it is

characterized by intense competition and multi channel delivery systems. The research

that forms the basis of this dissertation will be carried out at Monday to Sunday, a retailer

based in Bangalore. The core business of it is retailing .The main objective of this project

is to find out the customers expectations, perceptions and satisfaction, and a measure of

service quality at Monday to Sunday.

Retailing consists of those business activities involved in the sales of goods and services

to consumers for their personal, family or household use. The field of retailing is both

fascinating and complex. It has enormous impact on the economy, in distribution, and its

relationship with companies that see goods and services to retailers for their resale or use.

Retailing is the final stage in the distribution process, it does not necessary have to

include a retailer. Manufacturers, importers, non-profit firms, and wholesalers, and other

organization are also considered as retailers when they sell goods and/or services to final

consumers. Competition in the retailing scene has intensified manifold for the past few

decades, generally as a consequence of new technologies, more sophisticated

management practices and industry consolidation. These trends have been especially

pronounced in the food industry.


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There has been a significant amount of studies that examine the issues of retail chain

channel management and retail marketing strategies to tackle the fierce competition in

existing retail channels in food industry. As in all other industries, the ultimate decider of

the eventual success of an alternative retail channel is the CONSUMER.

Consumers refer to individuals who buy products and services for themselves or on

behalf on their households. They are invariably either users of these products or services

or responsible for the welfare and well being of those who are. Since consumers are

extremely crucial for retailers, an understanding of consumer behavior is an essential

prerequisite of successful retail marketing strategy and one of the most fundamental

principles of in exerting influence on consumer patronage decision process. Without

customer focus, marketing planning can easily be dominated by the actions of

competitors or internal influences. The success of a retailer depends on how well he/she

selects, identifies and understands his customers.

The feasibility of new retail channels is also highly dependent on retailers ability to

select the type of consumer segments to reach (mass markets, market segment, or

multiple segments), to identify the characteristics and needs of the specific target market

and understanding how consumers make decisions. According to Peter Mc Goldrick, the

most successful examples of innovation and evolution in retail formats are retailers that

respond accurately and profitably to previously unsatisfied needs.


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TYPES OF RETAIL OUTLETS

The emergence of new sectors has been accompanied by changes in existing formats as

well as the beginning of new formats:

. Hyper marts, typically 8,000 sq.ft and more

. Large supermarkets, typically 3,500-5,000 sq. ft.

. Mini supermarkets, typically 1,000-2,000 sq. ft.

. Convenience stores, typically 750-1,000sq. ft.

. Discount/shopping list grocery

THEORETICAL BACKGROUND

Consumer Research:

It is the process and tools used to study consumer behavior. Consumer behavior refers

to the behavior that display by him/ her in searching for purchasing, using, evaluating

and disposing of product or services that they expect.

Market Exclusivity:

It refers to single means monopoly market. Where the company wants to have full

market control. So, exclusivity in service like telecommunication refers to have only

the company.s services and full control over the intermediaries and customer.

Market:

A market is the set of all actual and potential buyers of a market offer. The size of a

market depends on the number of buyers who might exist for a particular market.


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Potential Market:

The potential market is the set of consumers who show a sufficient level of interest in

a market. Potential consumers access to the product offer. The available market is the

set of consumers who have interest, income and access to a particular type.

CUSTOMER SATISFACTION

Customer satisfaction is the individuals perception of the performance of the product

or service in relation to his or her expectations. Customer expectations are the reference

points for performance against which service experiences are compared.

Among the various benefits of customer satisfaction, the most important benefit is

that the customer satisfaction creates loyal customer.


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TYPES OF CUSTOMERS

SATISFIED CUSTOMERS

Whose experience exceeds the expectations and who provide very positive word of

mouth about the company to the others

NEUTRAL CUSTOMERS

Who are neutral or merely satisfied and are likely to stop doing business with the

company.

DISSATISFIED CUSTOMERS

Who have had negative experience with the company and who spread negative word

of mouth? Who are unhappy customers and who stay with the company because of a

monopolistic environment or low prices and who are difficult and costly to deal with

because of their frequent complaints.


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SERVICE QUALITY

The SERVQUAL method from Valarie A. Zeithaml, A. Parasuraman, and Leonard L.

Berry is a technique that can be used for performing a gap analysis of an organization's

service quality performance against customer service quality needs.

SERVQUAL is an empirically derived method that may be used by a services

organization to improve service quality. The method involves the development of an

understanding of the perceived service needs of target customers. These measuredperceptions of service quality for the organization in question, are then compared against

an organization that is "excellent". The resulting gap analysis may then be used as a

driver for service quality improvement.

SERVQUAL takes into account the perceptions of customers of the relative importance

of service attributes. This allows an organization to prioritize. And to use its resources to

improve the most critical service attributes.

The data are collected via surveys of a sample of customers. In these surveys, these

customers respond to a series of questions based around a number of key service

dimensions.

The methodology was originally based around 5 key dimensions:

1.Tangibles. Appearance of physical facilities, equipment, personnel, andcommunication materials.

2.Reliability. Ability to perform the promised service dependably and


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accurately.

3.Responsiveness. Willingness to help customers and provide prompt service.

4.Assurance. Knowledge and courtesy of employees and their ability to convey

trust and confidence.

5.Empathy. The firm provides care and individualized attention to its customers.

This has been adapted later by some to cover:

1. Tangibles. Appearance of physical facilities, equipment, personnel, and

communication materials.

2. Reliability. Ability to perform the promised service dependably and

accurately.

3. Responsiveness. Willingness to help customers and provide prompt

service.

4. Competence. Possession of required skill and knowledge to perform

service.

5. Courtesy. Politeness, respect, consideration and friendliness of contact

personnel.

6. Credibility. Trustworthiness, believability, honesty of the service

provider.

7. Feel secure. Freedom from danger, risk, or doubt.

8. Access. Approachable and easy of contact.

9. Communication. Listens to its customers and acknowledges their

comments. Keeps customers informed. In a language which they can understand.

10. Understanding the customer. Making the effort to know customers and

their needs.


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ORIGIN OF SERVQUAL. HISTORY

The authors conducted a qualitative study, from which they concluded that customers

ranked the importance of two SERVQUAL dimensions consistently. Regardless of

service industry. Reliability is the most important contributing factor to service quality

and tangibles is the least important.

USAGE OF SERVQUAL. APPLICATIONS

SERVQUAL is widely used within service industries to understand the

perceptions of target customers regarding their service needs. And to provide a

measurement of the service quality of the organization.

SERVQUAL may also be applied internally to understand employees'

perceptions of service quality. With the objective of achieving service

improvement.


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STEPS IN SERVQUAL. PROCESS

The method essentially involves conducting a sample survey of customers so that their

perceived service needs are understood. And for measuring their perceptions of service

quality for the organization in question.

Customers are asked to answer numerous questions within each dimension that

determines:

The relative importance of each attribute.

A measurement of performance expectations that would relate to an

"excellent" company.

A measurement of performance for the company in question.

This provides an assessment of the gap between desired and actual performance, together

with a ranking of the importance of service criteria. This allows an organization to focus

its resources. To maximize service quality whilst costs are controlled.

STRENGTHS OF SERVQUAL. BENEFITS

Most users would agree that a comprehensive and thorough examination of service needs

and service quality provides an invaluable approach to improving service quality.


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SERVQUAL provides detailed information about:

Customer perceptions of service (a benchmark established by your own

customers)

Performance levels as perceived by customers

Customer comments and suggestions

Impressions from employees with respect to customers expectations and

satisfaction

LIMITATIONS OF SERVQUAL. DISADVANTAGES

There have been a number of studies that doubt the validity of the 5 dimensions. And of

the uniform applicability of the method for all service sectors. According to an analysis

by Thomas P. Van Dyke, Victor R. Prybutok, and Leon A. Kappelman, it appears that the

use of difference scores in calculating SERVQUAL contributes to problems with the

reliability, discriminant validity, convergent validity, and predictive validity of the

measurement. These findings suggest that caution should be exercised in the use of

SERVQUAL scores and that further work is needed in the development of measures for

assessing the quality of information services.


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ASSUMPTIONS OF SERVQUAL. CONDITIONS

The results of market surveys are accurate. The validity of the model is

based around the results of empirical studies. A number of academics have since

performed further empirical studies that appear to contradict some of the original

findings.

Customer needs can be documented and captured, and they remain stable

during the whole process.


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PROBLEM STATEMENT

The crux of the problem lies in whether customers prefer to shop at the usual kirana

stores or are they satisfied by buying at Monday to Sunday. Also, the problem is to assess

the service quality of Monday to Sunday outlet in Bangalore.

OBJECTIVES OF THE STUDY

To understand the expectations of the customers..

To capture the perceptions of consumers towards services offered..

To analyze service quality pre process customer satisfaction

To make appropriate recommendations about customerss expectations and satisfaction

to the company.


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RESEARCH DESIGN

The research study first examines the various facets of service at the retail outlet and the

impact on the purchase behavior of the customers. A thorough literature survey has been

made in light of all the things surrounding customer satisfaction. Then a survey is taken

among the general public with a sample to arrive at several conclusions.

TYPE OF RESEARCH

It is a survey done to know the service quality with regard to Monday to Sunday.Thisincludes the questionnaire to know the service quality.

RESEARCH METHODOLOGY

Primary data was collected using the structured questionnaire and also through personal

interaction with the consumers at the store and personal observation. Secondary data will

be collected from various articles published in magazines, internet, company brochures

and publications.

The data was collected by contacting the 100 consumers personally at Monday to Sunday

outlet in Bangalore city. Collected data was tabulated using tables, charts and graphs.

Percentage was calculated and conclusions were drawn from the interpretation.


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SAMPLING

Sampling Technique-

The sampling technique followed was, administrating 100 questionnaires to the

customers selected on convenience basis in the absence of any data base about the

customers. That is irrespective of whether the customers purchased at Monday to Sunday

on a regular basis or not, but the questionnaire was given to people who made a purchase

at the outlet.

Sample Size-

The chosen sample size was 100.The sample was derived from the respondents within

Bangalore city at the Monday to Sunday retail outlet.

Sample Description-

The data taken for study is a convenient sample representing those who have been

purchasing from Monday to Sunday from some time, so that a proper conclusion can be

reached.


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INSTRUMENTATION TECHNIQUES

The questionnaire technique is used for the survey and the reasons for

using this approach are-

It covers wide area

It is not an expensive affair

Original data could be obtained

Easy to tabulate and understand

COLLECTION OF DATA

Data has been collected from both primary and secondary sources. Primary data is

collected by the questionnaires and personal observation. Secondary data is collected by

the referring to several journals, books, internet, magazines, etc.


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LIMITATIONS OF THE STUDY

The data is restricted to only one outlet.

Time constraint

Results are purely based on primary information

The analysis and interpretation is made under the assumption that data are accurate.


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COMPANY PROFILE

Monday to Sunday is a chain of super stores, which operates in Bangalore. Its unique

selling proposition is freshness. The outlets encompass the whole gamut of food

products, frozen, chilled, fresh, packaged, canned and dry. The store offers to its

customers the widest selection of fresh fruit, vegetables, meats and frozen products,

under regulated temperature and hygiene. The stores have an offering of over 20,000

products across fresh food, processed food, groceries, liquor, home care and personal care

categories.

The stores have invested in a 100% power back up for all its equipment as well as air

conditioning and is therefore successful in providing a completely temperature-controlled

environment for all food stuffs, ensuring their freshness and longevity. For example, the

fresh vegetables and fruits are displayed and stored in chillers, ensuring freshness through

the day. Similarly, the fresh homemade ice creams and meats are stored in freezers that

have 100% power backup, so icicles do not form on the meat as it thaws and resets. This

prevents any build up of bacteria.

Since its inception Monday to Sunday has created strong brand loyalty with a segment of

discerning customers within Bangalore and has continued to set benchmarks in food

retailing in this market. Monday-to-Sunday convenience store chain is run by Food

Express Store India Limited. The Hyper Market, which is designed on similar lines that

of international shopping malls like Wal Mart, is a single-point food store covering


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primarily food items including packaged foods, processed items, groceries,

vegetable/fruits, bakery products, confectioneries, savouries along with a range of

beverages as well as alcohol. In addition, it will also stock non-food items like apparels,

sports goods, bed and linen to name a few in the near future.

The unique selling proposition of the Hyper Market is the price and range. It also stands

apart in terms of ambience, technology and convenience. Part of the Bhartia Group that

owns Jubliant Organosys Ltd., Food Express Store acquired Amalgam Foods and

Beverages to set up its maiden store at Indiranagar. The Bangalore-based venture which

started off as a convenience store four years ago has since then set up two supermarkets

in the city at Koramangala and JP Nagar.

Besides the Hyper Market, the company is aggressively looking at expanding in its

formats - supermarkets and convenience stores in Bangalore. The outlet expansion will

also increase head count manifold to service the burgeoning retail sector.

Currently, Monday-to-Sunday has a 50-member workforce for back-end operations and

200 at the front end. The robust back-end team is aimed to handle the expansion plans of

the company and garner the required experience in handling the rapid rise of customer

inflow. The strengths of Monday-to-Sunday rest on business, people, environment and

integrity and the company is investing in both manpower and technology to be

competitive.

Jubilant Corporations business interest in food and retail segment is represented through

Dominos Pizza and Monday to Sunday. The brand equity enjoyed by these companies is


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formidable and is based on the value Jubilant has built over the years of operating in this

segment. As pioneers in these businesses they have an all-India network of outlets for

Dominos (company-owned) . These are built on strong fundamentals, which include the

supply chain management and a strong team manning these outlets. These fundamentals

have enabled them to consistently offer fresh and quality products, standardized across

the country for each business.

Jubilant Corporation, with the promise of Caring, Sharing, Growing, is a conglomerate of

four businesses - namely Life Science Products & Speciality Chemicals, Oil & Gas

(Exploration & Production), Food and Services.

Jubilant symbolizes positivity, dynamism, triumph and joy, all of which guide and shape

the corporation's collective experiences and efforts. Jubilant will always care for human

needs, share its expertise to provide a better life and help upgrade the stakeholders

standard of living and the corporation's sustainable growth by dynamizing the value chain

within the Corporation.

Jubilants vision is to be amongst the top 10 most admired companies to work for. They

want to maintain and acquire the first or second leadership position in our chosen area of

business in India and to establish it globally. They endeavor to create new opportunities

for growth in our strategic businesses which give a 10 points higher rate of return than the

cost of capital.


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Jubilants values guide to achieve our vision in our chosen areas of business, which

comprise the following:

Life Science Products and Speciality Chemicals

Jubilant Organosys

Jubilant Biosys

Jubilant Chemsys

Jubilant Clinsys

PSI & PSI Supply

Trigen Laboratories

Clinsys

Oil & Gas (E&P)

Jubilant Enpro

Food

Domino's Pizza

Monday To Sunday

Services

Jubilant Enpro


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Vision, Promise and Values

Jubilants Values determine their business path. Combined with Promise and Vision,

these values have determined what they have achieved and they continue to guide their

future.

Jubilants Values

Teamwork

They carefully select, train and develop people to be creative, empower them to take

decisions, so that they respond to all customers with agility, confidence and teamwork.


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Efficiency

Jubilant stretches itself to be cost effective and efficient in all aspects of operations and

focusses on flawless delivery to create and provide the best value to customers.

Knowhow

By sharing knowledge and learning from each other and from the markets they serve,

Jubilant continues to surprise customers with innovative solutions.


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Delivery

With utmost care for the environment and safety, Jubilant always strives to excel in the

quality of processes, products and services.


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BUSINESS PATH

All the four values are linked to each other in the Business path of Jubilant.

Confidence leads to efficiency. Efficiency leads to knowledge sharing which

in turn leads to quality.


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JUBILANTS PROMISE

Jubilant promises to care for the environment, the customer, to provide good

products, to invest resources in a wise way and to even enhance the share

holder value.


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JUBILANTS VISION

The vision of the company is to be among the top 10 companies,

To be 1 or 2 in the chosen area of business, and

To create new opportunities for growth.


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INDUSTRY PROFILE

The Indian Retail Industry

The Indian retail industry is no more nascent today. There has been a significant change

in retail trading over the years, from small kiranawalas in the vicinity to big super

markets; a transition is happening from the traditional retail sector to organized retailing.

The unorganized sector still holds a dominant position in this industry. Organised

retailing was worth Rs 23,000 crore in 2003 and is growing at a rate of 25-30 per cent

annually.

Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP

and around eight per cent of the employment. Retail industry in India is at the crossroads.

It has emerged as one of the most dynamic and fast paced industries with several players

entering the market. But because of the heavy initial investments required, break even is

difficult to achieve and many of these players have not tasted success so far. However,

the future is promising; the market is growing, government policies are becoming more

favorable and emerging technologies are facilitating operations.

Retailing in India is gradually inching its way toward becoming the next boom industry.

The whole concept of shopping has altered in terms of format and consumer buying

behavior, ushering in a revolution in shopping in India. Modern retail has entered India as

seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer


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shopping, entertainment and food all under one roof. The Indian retailing sector is at an

inflexion point where the growth of organized retailing and growth in the consumption by

the Indian population is going to take a higher growth trajectory. The Indian population is

witnessing a significant change in its demographics. A large young working population

with median age of 24 years, nuclear families in urban areas, along with increasing

working-women population and emerging opportunities in the services sector are going

to be the key growth drivers of the organized retail sector in India.


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Growth in Organized RetailingThe organized segment of the retail industry has grown past the 1% share during the year,

from 0.6% of the market three years back. The establishment of supermarkets and

convenience stores has been a great effort to communicate the advantages of organized

retailing to customers. With supermarkets like Apna Bazaar, Sahakari Bhandar, 9 to 9,

Food World and Margin Free shops providing easy access to goods at reduced prices,

with few even providing a constant supply of foreign goods, the organized sector does

attract the bargain hunter's attention.

Food and clothing still account for the largest proportion of consumer spending. Together

they account for about 60% of the estimated household expenditure. With the hospitality

sector expected to grow at a compounded annual growth of about 13% during the next

three years, the food retailing ventures can certainly be looked at to spread further across

cities.Customer relationship management tracks down loyal customers and focuses ontheir satisfaction. A rapid transformation from traditional to organized retailing would

occur only on account of a change in consumer expectation and behaviour. To tackle this

factor, retailers are focusing on retaining customers through various marketing strategies.


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Food retail

Food dominates the shopping basket in India. The Indian foods industry, which forms 44

per cent of the entire FMCG sales, is growing at 9 per cent and has set the growth agenda

for modern trade formats. Since nearly 60 per cent of the average Indian grocery basket

comprises non-branded items, the branded food industry is homing in on converting

Indian consumers to branded food.

With consumers looking at convenience with multiplicity of choice under one roof and

expectations evolving over time, consumer demand is truly the driving force for

organized retailing in the country. Food and beverages form the main chunk of the retail

market. They are followed by apparel and footwear. The Indian textile industry, the

backbone of the apparel segment, has a large share of the Indian economy, accounting for

over 20% of industrial production as well as providing direct and indirect employment to

around 65 million people.

Grocery retailers continued to be the staple of retailing in 2005, accounting for three-

quarters of overall retailingvalue sales. Moderate growth of 7% in current value terms forgrocery retailers in 2005 over the previous year was mainly attributable to the hegemony

of a large and mature base of independent grocers and, to a much smaller extent, food

specialists and other grocery retailers. Up and coming modern retail channels such as

hypermarkets, supermarkets, convenience stores and discounters were unable to make a

significant mark in grocery retailers' value due to a limited geographical spread and


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consumer reach.

However, kiranas could hardly afford to be complacent, with supermarkets and

hypermarkets experiencing strong growth. Supermarkets and hypermarkets benefited dueto their vast product portfolios tailored to consumer demand, promotional initiatives,

private label and affordable pricing, which made it enticing for consumers to make a

switch from traditional kiranas.

Supermarkets also expanded current value sales by expanding into smaller towns and

cities, registering a commendable 28% growth in 2005 over the previous year.Despite the

retail store density in India with regard to population being the largest, it is estimated that

over 90% of the stores are less than 500 sq. ft in size. Industry estimates put the number

of retail outlets at 12 million. This is clearly indicative of small-shop ownership crowding

the unorganized segment of retailing. While this fragmented market structure does pose

significant challenges for organized retailing, potential does exist if modern information

and supply chain management systems are deployed to support the development of

convenience shops that match customer expectations.


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ANALYSIS AND INTERPRETATION

Table 1- Table showing age group of respondents

Serial

No.

Age group of respondents Percentage of respondents

1 Less than or equal to 20 11

2 Between 20 and 30 63

3 Between 30 and 40 17

4 Above 40 9

Chart 1- Chart showing age group of respondents

Source-Market Survey

From the above table, it is evident that mostof the customers who visit Monday to

Sunday are aged between 20 and 30. 63 percent of the respondents fell in this category.

About 17 percent of the respondents were aged between 30 and 40, 11 percent below 20

and only 9 percent of them were aged above 40.

0

20

40

60

80

Less than or

equal to 20

Between 20 and

30

Between 30 and

40

Above 40

Age group of respondents

No.ofrespondents

Series1


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Table2- Table showing gender of the respondents.

Serial No. Gender of the respondents Percentage of

respondents

1 Male 65

2 Female 35

Chart 2-Chart showing gender of respondents


Gender indicates proportion of Male and Female customers who have visited monday to

sunday. It has been well documented that males and females can differ in traits, attitudes,

and activities that can affect consumer behavior and choices. Hence the gender details of

the respondents were collected, which has been shown in the diagram.

From the statistics we can find that 65 percent of the respondents were males and the

remaining were females.

Table 3- Table showing frequency of customers visiting Monday to Sunday.

Male, 65

Female, 35

0

20

40

60

80

Number of

respondents

1

Male

Female


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Serial No. Frequency Percentage of

respondents

1 Weekly 41

2 Fortnightly 21

3 Monthly 17

4 Quite rarely 21

Chart 3-Chart showing frequency of customers visiting Monday to Sunday


Most of the customers, that is almost half of the entire customer population visit the

outlet on a weekly basis. About 21 percent of them visit on a fortnightly basis or quite

rarely. 17 percent of the customers visit on a monthly basis.

41

21 17 21

0

10

20

30

40

50

1.Weekly 2.Fortnightly 3.Monthly 4.Quite rarely

Frequency of visiting

Numberof

respondents

Series1


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Table 4- Table showing the time span since the respondent has been a customer of

Monday to Sunday.

Serial No. Time span Percentage of

respondents

1 Less than 6 months 43

2 6 months to 1 year 21

3 1 year- 2years 23

4 More than 2 years 13

Chart 4- Chart showing the time span since the respondent has been a customer of

Monday to Sunday.


Out of the 100 respondents surveyed, nearly 43 percent of them have been customers of

Monday to Sunday since a month. The number of respondents who have purchased for

more than 6 months to a year and more than a year to two years are almost the same

counting upto 21 and 23 respectively. Only 13 customers have been purchasing for more

than two years.

1.Less than 6 m onths

2.6 months to 1 year

3.1 year- 2years

4.More than 2 years


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Table 5-Table showing the customers ranking in terms of cleanliness.

Serial No. Levels of Cleanliness Percentage of

respondents

1 Excellent 18

2 Good 58

3 Average 20

4 Bad 4

5 Very Bad 0

Chart5-Chart showing the customers ranking in terms of cleanliness.


As it can be seen from the above chart, most customers feel that the outlet is good in

terms of cleanliness. Very few respondents felt that the place should be kept cleaner.

None of the customers have ranked the outlet as very bad in terms of cleanliness!

However, a few customers have also complained that the place looks clean but actually is

not so.

0 20 40 60 80

1

Levelofcleanliness

Number of respondents

Very Bad

Bad

Average

Good

Excellent


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Table 6-Table showing the customers satisfaction in terms of interiors at Monday

to sunday.

Chart 6-Chart showing the customers satisfaction in terms of interiors at Monday

to sunday.


58 percent of the respondents consider the interiors at Monday to Sunday to be good. 10

percent of them feel it is excellent. 27 percent of the customers feel that the interiors can

be just ranked as average. Only 5 percent feel it is bad.

Serial No. Interiors Percentage of

respondents

1 Excellent 10

2 Good 58

3 Average 27

4 Bad 5

5 Very Bad 0

0

20

40

60

80

Excellent Good Average Bad Very Bad

Levels of satisfaction

Numberof

respondents

Series1


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Table 7- Table showing the customers satisfaction in terms of bill transaction.

Chart 7- Chart showing the customers satisfaction in terms of bill transaction.


The customers are very upset with respect to the billing system. Very few of them have

given a positive response with respect to bill transaction. They have lots of complaints

with the billing system as it happens to be very slow and outdated when compared to

other retail outlets. Most of the respondents have ranked the billing as average or bad.

Serial No. Bill transaction Percentage of

respondents

1 Excellent 4

2 Good 18

3 Average 36

4 Bad 28

5 Very Bad 14

4%

28%

36%

18%

14% Excellent

Good

Average

Bad

Very Bad


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Table 8- Table showing the customers satisfaction with respect to display of

products.

Chart 8- Chart showing the customers satisfaction with respect to display of

products.


As it can be seen from the table and the chart, the way the products are displayed at

Monday to Sunday is ranked as average by most of the customers. 32 percent of them

feel that the display is good. Only 2 percent feel that the display is excellent, 13 percent

consider it bad and 10 percent feel it is very bad. Some customers have said that related

products should be kept together so that searching for them in the store will be easier and

convenient.

Serial No. Display of products Percentage of

respondents

1 Excellent 2

2 Good 32

3 Average 43

4 Bad 13

5 Very Bad 10

Excellent

2% Good

32%

Average43%

Bad

13%

Very Bad

10%Excellent

Good

Average

Bad

Very Bad


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Table 9- Table showing the customers ranking of shopping experience at Monday

to Sunday.

Chart 9- Chart showing the customers ranking of shopping experience at Monday

to Sunday.


Shopping experience is different for each individual. Shopping at Monday to Sunday

happens to be excellent for a few customers where as it happens to be very bad for a few

customers. Most of the respondents have ranked this attribute as either average or good.

Only 1 percent feels it is very bad.

Table 10- Table showing the ranking of sales personnel with respect to helping

customers.

Serial No. Shopping experience Percentage of

respondents

1 Excellent 14

2 Good 49

3 Average 34

4 Bad 2

5 Very Bad 1

0 10 20 30 40 50

Number of respondents

1

Levelsof

satisfactionof

shopping

experience

Very Bad

Bad

Average

Good

Excellent


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Chart 10- Chart showing the ranking of sales personell with respect to helping

customers.


Many customers have complaints regarding the sales representatives at Monday to

Sunday. They say that the sales representatives hardly help them in shopping. It is very

rare that a sales representative provides any kind of support to the customers. Most of the

times they are inaccessible in spite of being present in the store. Language also happens

to be a great barrier to communicate as the sales representatives cannot speak English.

Table 11- Table showing the ranking of sales personnel in terms of knowledge of

products.

Serial No. Helping customers Percentage of

respondents

1 Excellent 0

2 Good 34

3 Average 54

4 Bad 5

5 Very Bad 7

0

10

2030

40

50

60


Helping customers

Numberof

customers

Series1


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Chart 11-Chart showing the ranking of sales personnel in terms of knowledge of

products.


The respondents have said that the sales representatives at Monday to Sunday have

absolutely no knowledge about the products. When asked something, they are unable to

say anything about the product eg. even attributes like brand name etc. Most customers

have ranked this attribute as average, bad or very bad. 60 percent of the customers have

ranked as average.

Serial No. Knowledge of products Percentage of

respondents

1 Excellent 0

2 Good 8

3 Average 60

4 Bad 17

5 Very Bad 15

0%

8%

60%

17%

15%Excellent

Good

Average

Bad

Very Bad


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Table 12-Table showing the ranking of sales personnel in terms of

courteousness/politeness towards customers.

Chart 12- Chart showing the ranking of sales personnel in terms of

courteousness/politeness towards customers.


The customers have no problems with sales representatives regarding the courteousness/

politeness. They consider them to be quite polite towards customers. Negative ranking forthis attribute has been recorded as very less.

Serial No. Courteousness/politeness Percentage of

respondents

1 Excellent 2

2 Good 40

3 Average 54

4 Bad 3

5 Very Bad 1

010

2030405060

Number of

respondents

Excellent Average Very Bad

Courteousness/politeness of

sales representatives

Series1


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Table 13- Table showing the ranking of products in terms of availability.

Table 14 - Table showing the ranking of products in terms of quality.

Serial No. Availability Percentage of

respondents

1 Excellent 0

2 Good 41

3 Average 44

4 Bad 12

5 Very Bad 3

Serial No. Quality Percentage of

respondents

1 Excellent 8

2 Good 60

3 Average 30

4 Bad 2

5 Very Bad 0


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Table 15- Table showing the ranking of products in terms of pricing

Chart 13- Chart showing ranking of products by customers in terms of availability,

quality, pricing.

With respect to availability of products, the customers are very upset with Monday to

Serial No. Pricing Percentage of

respondents

1 Excellent 2

2 Good 48

3 Average 49

4 Bad 1

5 Very Bad 0

0

20

40

60

80


Lev els of satisfaction on product

availability,quality,pricing

Numberof

respondents

Series1

Series2

Series3


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Sunday. They often do not get the products they want at this outlet. Almost all the

customers have made a mention of at least one incident when they wanted a product and

have gone elsewhere to purchase. Nobody has marked this attribute as excellent.

Customers have no issues regarding the quality of products at Monday to Sunday. 60

percent of the customers feel that he quality is good and 30 percent feel it is of average

quality.

The pricing of products is quite good at Monday to Sunday, customers are happy with the

discounts on products. Some customers have also mentioned that the products are quite

cheap at Monday to Sunday as compared to other outlets. 48 percent of the respondents

have ranked it as good and 49 percent as average.


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Chart 14- Chart indicating whether customers will recommend the store to a friend

or relative.

79 percent of the customers have said that they will recommend the store to a friend or

relative. 8 percent of the customers are very upset with Monday to Sunday and have

strongly said that they will never recommend this outlet to anyone. 3 percent of the

customers have been diplomatic in answering this question and have responded that they

cannot say anything.

79%

8%

13%

Yes

No

Can't say


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FINDINGS OF THE STUDY

Customers of all age groups visit Monday to Sunday. Thus, age can be considered as

a criteria for shopping because people differ in their tastes, choices expectation and

satisfaction.

It cannot be judged whether more men or women shop at retail outlets. Our

sample would have had more of men than women, but most women

do visit the store on weekdays.

Most of the customers visit monday to sunday and a majority of them have

been a customer from less than 6 months.

In terms of cleanliness, most customers do not have a problem. One or two

customers have complained that they were very upset when they saw the

baker preparing cakes without gloves and also saw insects on the food. However,

they feel that the meat products make the place stink and they find it tough to shop

at the outlet. They however, are quite contented with the interior decorations of

the place.

Almost 50 to 70 percent of the customers are very upset with the billing

system. They say that the transaction is very slow. It is just a step ahead of

hand billing. At times, only one counter is open and the customers are made

to wait for a long time.


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The sales representatives at Monday to Sunday do not provide any kind of help

to customers when they are shopping. Infact a few foreign customers have

complained that they find it very tough to communicate with the sales representatives

as they have a barrier. The sales representatives cannot speak English. When asked

about products also, they do not have the least knowledge required. The sales

representatives have however been ranked as good and very good in terms

of courteousness/politeness towards customers.

The service at times is so bad, the customers are made to wait for long hours.

One customer quoted an example when she was made to wait for half an hour just

to get 6 eggs.

The quality and pricing of products happens to be quite good at Monday to Sunday.

A few products are currently unavailable and the customers have given a huge list

of the products which they would want at Monday to Sunday. The customers

want more international products.

Most of the customers would recommend Monday to Sunday to other people,

they have also mentioned that they can send many more customers to the store if

the service improves.


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SUGGESTIONS AND RECOMMENDATIONS.

Monday to Sunday should improve on areas like customer service etc. If customers are

made to wait for long hours, it will reduce their inclination to buy from this store.

The bill transaction happens to be a major reason which is annoying most of the

customers. The sales representatives should be requested to speed up on this, appropriate

arrangements should be made to speed the system.

It is very much necessary to train the sales representatives in terms of helping customers

and also on knowledge about the products. When customers ask the sales representatives

about something, they should be able to explain the features, and also give a comparison

with other products.

Customers want more products at the outlet, especially international products. Customers

also want more cosmetics. Some local products are also out of stock most of the times.

All these aspects should be taken care of.

Monday to Sunday should go in for customer loyalty programs in order to retain

customers.

Areas like vegetable and meat storage should be kept cleaner. It should be seen to that the

smell of meat doesnt spread across the store. This is upsetting the customers to a large

extent.


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The display of products should be much better. Related products should be kept together.

It should be easy to access the products.


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ANNEXURE

QUESTIONNAIRE

NAME-_____________________________________________________AGE-_______

OCCUPATION-__________________________________________________________

1. How often do you visit monday to sunday?

1. Weekly 2.Fortnightly 3.Monthly 4.Quite rarely

2.Since how long have you been a customer of monday to sunday?

1. Less than 6 months 2.6 months to 1 year

3.1 year- 2years 4.More than 2 years.

3.How do you rank the services of monday to sunday in terms of-


Cleanliness

Interiors

Billtransaction

Display ofproducts

Shopping

experience


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4.How do you rank the sales representatives at monday to sunday in terms of-

Excellent Good Average Bad Very

bad

Helping customers

Knowledge of products

Courteousness/politeness

towards customers

5.How do you rank the products at monday to sunday in terms of-

Excellent Good Average Bad Very bad

Availability

Quality

Pricing

6. Any particular incident when you have been upset with monday to sunday.

________________________________________________________________________

________________________________________________________________________

7. Any particular product/ service currently unavailable at monday to sunday which youwould want.


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8. Would you recommend monday to sunday to a friend/relative?

Yes No Cant say

9. Please suggest a few areas for improvement.

________________________________________________________________________

________________________________________________________________________


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BIBLIOGRAPHY

Websites referred-

www.jubilantcorp.com

www.google.com

www.questionpro.com

Books referred-

Marketing Management by Philip Kotler

Retail Marketing Management by David Gilbert

Consumer Behaviour by Schiffman


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Documents

Tanvi-0597-Custimer Expectetion and Satisfaction of Serv (1)